Africa-Israel Properties target 80% above market

Analysts Shai Lipman and Yuval Zehira say conservative asset valuation policies explain the discount in the stock.
The negotiations on a takeover of investment house IBI by Africa-Israel Investments (TASE: AFIL) ended without result, and IBI has resumed coverage of the group. The first group company to come under scrutiny is Africa-Israel Properties Ltd., for which IBI has retained a "Buy" recommendation and substantially upgraded its target price. The current target, NIS 290, is 80% above the price of the share yesterday when the recommendation was released to investors. The current target is 30% than IBI's previous target price for the company of NIS 225. Africa-Israel Properties coordinates the Africa Israel Group’s income-producing real estate activities in Israel and abroad.
"We find the developments in Eastern Europe and the income-producing assets portfolio in Israel and in Eastern Europe to be a relatively safe activity with future growth potential," IBI analysts Shai Lipman and Yuval Zehira write.